The present invention relates to an expert system and to a method of providing automated advice.
The invention has particular, but not exclusive, application to the field of financial services.
Recently, the range of financial services products available to the consumer has begun to express a dichotomy. The introduction of new technologies, systems and practices, coupled with consumers' growing knowledge and confidence in the field of financial affairs have led to the development of “execution-only” sales. In such sales even complex financial products such as pensions and investment products—once thought of as requiring “face-to-face” consultation—are being sold on a commodity basis.
The public appetite for such products seems to be growing. Increasing affluence and a diminishing welfare state in many developed countries mean that people are considering private personal investments as desirable or even necessary. In addition, the pace of everyday life means that they have less time to spend planning and consulting advisors on these investments.
Newcomers to the field of financial services are providing execution-only financial products by a number of channels: using a traditional application form, by telephone contact and over the Internet, typically from a consumer's own personal computer (PC). All of these channels have a significantly lower cost to the provider and avoid the cost of the provision and training of a traditional network of human advisers. Consequently, such providers are able to offer a cheaper service and/or be more profitable than their more traditional competitors. Established companies in the field may be reluctant to enter the execution-only market for fear that their good name will be tarnished. Their market share is, therefore, likely to diminish.
Some consumers may be reluctant to conduct an “execution-only” transaction because of lack of confidence in their own ability in the relevant field. Equally they may be daunted by the prospect of a detailed, and possibly rather revealing, interview with a human expert. There is also the fear that the advice given must be paid for and there will be substantial hidden charges in whatever product or products are recommended. The customer thus needs to obtain the relevant assurance from a different source.